It appears that overconfidence in Moody’s was one of Desjardins biggest mistake in this matter. The irony here is that Moody’s rate negatively institutions (Desjardins) that are in difficulty because they relied on Moody’s positive rating of certain financial product. It sound like Moody’s rates Moody’s’ negatively.
Moody’s gave the best rating to PCAA in 2007. Desjardins lost 591 million because of PCAA in the last quarter of 2008. In 2009, Moody’s express warning on the Risk Management at Desjardins since they do not manage properly complex financial products such as the PCAA.